<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Nov 12, 2008
</TR><!-- headline one : start --><TR>SingTel freezes hiring <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Chua Hian Hou
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
</TD><TD vAlign=bottom>
SingTel chief executive Chua Sock Koong said at a results briefing that the 'unprecedented' global financial crisis would have a 'negative impact on businesses', including the telco itself. --PHOTO: BUSINESS TIMES
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->
SINGTEL, which posted a 12 per cent fall in net profit in the second quarter, has begun cost-cutting measures to help it ride out the downturn, including a hiring freeze and cutback on discretionary expenses, the company said on Wednesday.
SingTel chief executive Chua Sock Koong said at a results briefing that the 'unprecedented' global financial crisis would have a 'negative impact on businesses', including the telco itself.
To counter the downturn, she said the group has 'implemented a hiring freeze and we're looking at discretionary expense items, how they can be better managed'.
SingTel, Singapore's largest listed company by market capitalisation and the region's largest telco, will also look at other austerity measures like 'redeploying' staff to do other roles within the organisation and adjusting its variable bonus payout, added Ms Chua.
While she did not rule out retrenchments, she said 'this would be the company's last resort'.
SingTel has over 11,000 employees in Singapore.
For its second quarter ended Sept 30, SingTel reported a 12.1 per cent drop in net profit to $868 million, or 5.43 cents per share, from $988 million, or 6.18 cents last year.
The profit fall was due to subsidies for the Apple iPhone, and foreign currency fluctuations that resulted in lower income from its overseas investments, like India's Bharti Airtel and Indonesia's Telkomsel.
Revenue was up 5.3 per cent rise in revenues to $3.89 billion. SingTel will pay a dividend of 5.6 cents, unchanged from a year ago.
While the current climate is challenging, it also offers some opportunities.
The downturn has made it attractive for SingTel to venture into markets like China and Vietnam, where some companies are now more open to selling a stake in themselves, and at lower prices too, said SingTel's chief executive for overseas operations, Mr Lim Chuan Poh.
He declined to say what stage the discussions are at now. <!-- end of for each --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Wed, 12 Nov 2008 16:37:44:171---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>
</TR><!-- headline one : start --><TR>SingTel freezes hiring <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Chua Hian Hou
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
SingTel chief executive Chua Sock Koong said at a results briefing that the 'unprecedented' global financial crisis would have a 'negative impact on businesses', including the telco itself. --PHOTO: BUSINESS TIMES
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->
SINGTEL, which posted a 12 per cent fall in net profit in the second quarter, has begun cost-cutting measures to help it ride out the downturn, including a hiring freeze and cutback on discretionary expenses, the company said on Wednesday.
SingTel chief executive Chua Sock Koong said at a results briefing that the 'unprecedented' global financial crisis would have a 'negative impact on businesses', including the telco itself.
To counter the downturn, she said the group has 'implemented a hiring freeze and we're looking at discretionary expense items, how they can be better managed'.
SingTel, Singapore's largest listed company by market capitalisation and the region's largest telco, will also look at other austerity measures like 'redeploying' staff to do other roles within the organisation and adjusting its variable bonus payout, added Ms Chua.
While she did not rule out retrenchments, she said 'this would be the company's last resort'.
SingTel has over 11,000 employees in Singapore.
For its second quarter ended Sept 30, SingTel reported a 12.1 per cent drop in net profit to $868 million, or 5.43 cents per share, from $988 million, or 6.18 cents last year.
The profit fall was due to subsidies for the Apple iPhone, and foreign currency fluctuations that resulted in lower income from its overseas investments, like India's Bharti Airtel and Indonesia's Telkomsel.
Revenue was up 5.3 per cent rise in revenues to $3.89 billion. SingTel will pay a dividend of 5.6 cents, unchanged from a year ago.
While the current climate is challenging, it also offers some opportunities.
The downturn has made it attractive for SingTel to venture into markets like China and Vietnam, where some companies are now more open to selling a stake in themselves, and at lower prices too, said SingTel's chief executive for overseas operations, Mr Lim Chuan Poh.
He declined to say what stage the discussions are at now. <!-- end of for each --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Wed, 12 Nov 2008 16:37:44:171---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>
